By: Barrientos, Gallegos S.B. No. 1621 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to discrimination against tenants of federally subsidized 1-3 or assisted housing converted to market rate housing. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 15, Property Code, is amended by adding 1-6 Chapter 302 to read as follows: 1-7 CHAPTER 302. DISCRIMINATION AGAINST TENANTS 1-8 OF CERTAIN FEDERALLY SUBSIDIZED OR ASSISTED HOUSING 1-9 Sec. 302.001. DEFINITIONS. In this chapter: 1-10 (1) "Housing conversion" means: 1-11 (A) prepayment of a mortgage by an owner of a 1-12 subsidized or assisted development; or 1-13 (B) nonrenewal of an expiring Section 8 1-14 project-based or rent supplement project-based contract by an owner 1-15 of a subsidized or assisted development. 1-16 (2) "Subsidized or assisted development" means a 1-17 multifamily housing development subsidized or assisted by the 1-18 United States Department of Housing and Urban Development under 1-19 Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1-20 1437f). 1-21 Sec. 302.002. PROHIBITED DISCRIMINATION AGAINST TENANT OF 1-22 SUBSIDIZED OR ASSISTED DEVELOPMENT. An owner of a subsidized or 1-23 assisted development in which a housing conversion has occurred or 1-24 the owner's agent may not without good cause refuse or fail to 1-25 enter into a lease agreement with a tenant of the development under 2-1 the Section 8 Housing Choice Voucher Program for any reason related 2-2 to the tenant's participation in the program. 2-3 Sec. 302.003. CIVIL ACTION. A tenant of a subsidized or 2-4 assisted development in which a housing conversion has occurred may 2-5 bring a civil action against an owner of the development if the 2-6 owner or the owner's agent without good cause refuses or fails to 2-7 enter into a lease agreement with the tenant as described by 2-8 Section 302.002. 2-9 Sec. 302.004. RELIEF GRANTED. (a) If in an action brought 2-10 under Section 302.003 the court finds that an owner of a subsidized 2-11 or assisted development in which a housing conversion has occurred 2-12 or the owner's agent without good cause has refused or failed to 2-13 enter into a lease agreement with a tenant as described by Section 2-14 302.002, the court shall award to the tenant: 2-15 (1) actual damages; 2-16 (2) attorney's fees, court costs, and any other 2-17 reasonable costs incurred in bringing the action; and 2-18 (3) any appropriate injunctive relief, including 2-19 prohibiting the owner or the owner's agent from engaging in 2-20 discrimination as described by this chapter or ordering appropriate 2-21 affirmative action. 2-22 (b) The court may award a civil penalty of $100 plus three 2-23 times the tenant's fair market monthly rent if the court makes the 2-24 finding described by Subsection (a) and an additional finding that: 2-25 (1) the tenant, before bringing the action, gave the 2-26 owner or the owner's agent a written demand that the owner or the 3-1 owner's agent enter into a lease agreement with the tenant under 3-2 the Section 8 Housing Choice Voucher Program; and 3-3 (2) the owner or the owner's agent without good cause 3-4 refused or failed to enter into the lease agreement before the 3-5 expiration of the 10th day after the date of receipt of the 3-6 tenant's demand. 3-7 Sec. 302.005. DEFENSE TO FORCIBLE DETAINER ACTION. It is a 3-8 defense to a forcible detainer action under Chapter 24 that the 3-9 underlying basis of the claim for possession, in whole or in part, 3-10 is the refusal or failure of the owner of a subsidized or assisted 3-11 development in which a housing conversion has occurred or the 3-12 owner's agent to enter into a lease agreement with the defendant as 3-13 described by Section 302.002, absent good cause for the refusal or 3-14 failure. 3-15 Sec. 302.006. BURDEN ON OWNER OF DEVELOPMENT. The owner has 3-16 the burden of pleading and proving good cause to refuse or fail to 3-17 enter into a lease agreement with the tenant as described by 3-18 Section 302.002. 3-19 SECTION 2. This Act takes effect September 1, 2001.